Torex Gold Resources Inc.

Torex Gold Resources Inc. is a mid-tier gold producer headquartered in Toronto, Canada, operating primarily in Mexico. The company's portfolio consists of 1 operating mine, in addition to several early-stage exploration prospects. Key assets include Morelos. The business model centers on an integrated operational complex featuring both surface and underground extraction methods feeding a central processing facility. A key technological advantage is the operation of one of the world's largest filtered tailings facilities, which dewaters material to 17% moisture to enhance stability and conserve water; this system will be supplemented by a transition to in-pit tailings deposition. The organization is enhancing its processing capabilities by installing a new flotation circuit to produce a saleable concentrate, which diversifies its product streams and improves overall metallurgical recoveries. This modification allows for the separate leaching of different flotation streams, optimizing recovery from various ore types. The introduction of battery electric vehicles and a new solar power facility underscores a commitment to technological advancement and operational efficiency. Operational synergies are realized by leveraging shared infrastructure, including a tunnel and conveyor system designed to unify different operational zones into a single, cohesive complex.

Strategic priorities are centered on optimizing existing production while concurrently developing new deposits to extend the operational life and enhance value. A key objective is to deliver a major new project to full production and advance another deposit, supported by a disciplined capital allocation approach that prioritizes reinvesting available funds into future growth. The organization is actively seeking opportunities to acquire assets that facilitate diversification. The exploration strategy focuses on unlocking near-mine opportunities and testing high-priority targets within the broader land package, with a planned investment of approximately $45 million for 124,500 meters of drilling in 2025. This program aims to grow reserves and resources to sustain a consistent production profile beyond 2030. Financial strategy includes managing market volatility through hedging instruments and a normal course issuer bid, authorized for up to 7,116,777 common shares, to provide flexible capital management.

The governance framework is overseen by an 8-member board of directors, with leadership provided by a Board Chair possessing over 40 years of industry experience. Strategic oversight is structured through 5 standing committees: Audit, Compensation, Corporate Governance and Nominating, Safety and Corporate Social Responsibility, and Technical. All members of these committees are independent. The Audit Committee, which includes 2 designated financial experts, meets at least quarterly to review financial reporting and internal controls. Executive leadership is spearheaded by a President and Chief Executive Officer who has been with the organization since 2018, previously serving as Chief Operating Officer. Management philosophy emphasizes a robust safety culture, demonstrated by the "Next Level Safety" program, which was initiated to reinforce fatal risk standards and includes comprehensive internal investigations and external assessments. The organization operates under a formal Enterprise-wide Risk Management Program and maintains a suite of governance policies, including a Code of Business Conduct and a Whistleblower Policy.

The sustainability strategy is anchored by a commitment to achieve net-zero greenhouse gas emissions by 2050, with a 2030 target to reduce absolute Scope 1 and 2 emissions by 10% from a 2021 baseline. This is supported by tangible initiatives, including the construction of a new solar power facility and the introduction of battery electric vehicles. Community engagement is managed through a collaborative partnership model, featuring unique annual development agreements (CODECOPs) with 12 local communities that empower local stakeholders to prioritize and deliver projects. Environmental stewardship is guided by an Environmental and Social Management System aligned with IFC Performance Standards, with a core commitment to "no net loss" of natural habitat supported by annual reforestation programs. The organization adheres to multiple global standards, having achieved full certification under the International Cyanide Management Code in 2024, adopted the World Gold Council’s Responsible Gold Mining Principles, and committed to implementing the Global Industry Standard on Tailings Management.

The enterprise conducts its principal operations through a wholly-owned subsidiary. The shares of this primary operating entity, along with another key subsidiary, are pledged as security under a secured $300 million debt facility with a syndicate of lenders that includes Bank of Montreal, Bank of Nova Scotia, and Canadian Imperial Bank of Commerce. This credit agreement was most recently amended and restated in July 2024. The facility also includes an accordion feature for an additional $150 million in available capacity. The organization's current structure is the result of foundational acquisitions completed between 2009 and 2010. No material joint ventures or corporate acquisitions have been executed in the most recently completed financial year. The company's strategic objectives include seeking opportunities for diversification through asset acquisition.